The government is considering launching a new investment fund to support the growth of start-ups in the UK, fearing a loss in access to funds from the European Investment Fund (EIF) after its exit from the European Union.

EIF-backed funds have participated in around £1 billion per year of private equity investment into UK firms between 2014 and 2016.

According to a new consultation released by the Treasury, UK start-ups struggle to reach their potential in the latter stages of investment and growth, falling well short of what is seen in the US and China. The government wants to set up a National Investment Fund to help more young, innovative firms in the UK reach Unicorn status (valued at over $1 billion).